Chinese multinational technology conglomerate, Tencent has reached an agreement for an all cash acquisition of video game developer Sumo Group for £919m.

Tencent first invested in the business in 2019 and currently holds 15m shares in the group which is headquartered in Sheffield and has operations in Nottingham, Warrington, Leamington Spa and Leeds and is now looking to acquire the remaining shares through its indirect wholly owned subsidiary Sixjoy Hong Kong ltd.

The deal values each Sumo share at 513 pence offering a premium of approximately 43.3% on Friday’s closing share price and according to Ian Livingstone chairman of Sumo will “help secure and further the aspirations and long-terms success of Sumo.”